This vision addresses the importance of global standards, regulation that supports decision-useful disclosure, and the value of an interconnected approach to sustainability and financial information reporting and assurance.

Furthermore, IFAC’s vision calls for assurance of sustainability information to be a requirement by authorities and regulators, as it enhances the credibility of reporting.  It also references practices identified during IFAC’s year-long, global engagement campaign related to the State of Play in Sustainability Assurance. 

In line with this vision and its Building Blocks Approach, IFAC suggests emerging regulatory frameworks should be designed to promote robust, decision-useful disclosure and disincentivize a compliance-based approach to both reporting and assurance. They believe that aligning sustainability disclosure with financial reporting, and connecting sustainability assurance engagements with financial statement audits, will be valuable to reporting entities and their stakeholders.

Please click for more information on the IFAC website.